The Arini Credit Master Fund jumped 23.4% through the end of October benefiting from bets against European manufacturers facing US and China headwinds, Reuters reports, citing an unnamed source and a September investor letter.
Managed by former Credit Suisse bond trader Hamza Lemssouguer, the $3.7bn fund, which focuses on European markets, made short bets on electric vehicle and satellite companies, anticipating growing pressure on these sectors amid rising protectionist measures in the US and China’s ability to mass-produce at low costs.
The September letter reports that following Elon Musk's Starlink winning contracts with United Airlines and Air France, European satellite industry bonds traded saw significant declines in September, with some falling as much as 10%. The letter also noted that with waning European consumer demand, fading government stimulus, falling used electric vehicle prices and high labour costs, there will be further demands on the industry, furthered by Europe having to pay for commodities that are primarily priced in US dollars.
According to hedge fund research firm PivotalPath, cited by Reuters, Arini's year-to-date performance has outpaced recent industry averages, with hedge funds focused on corporate debt returning 9% and those in distressed assets up 11.5% over the same period.
The fund, which manages a total of $6.7bn, has not yet released its October update. Spokespeople declined to comment.
Lynx Asset Management selects xyt for global equities liquidity analytics
Lynx Asset Management has selected market data analytics provider xyt to deliver independent trading volume and liquidity analysis across…
More
Brazil election rally boosts hedge funds
Brazilian hedge fund managers who correctly anticipated a strong first-round performance by right-wing presidential candidate Flávio…
More
Tiger Global set for $5bn paper gain from early OpenAI investment
Tiger Global Management is poised to generate an estimated $5bn in paper gains from its early investment in OpenAI, as the artificial…
More